Tag: Financial CHOICE Act

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House Approves Financial CHOICE Act In Major Step to Repealing Dodd-Frank

bank-of-america_theridgewoodblog

June 9,2017

the staff of the Ridgewood blog

Washington DC, The House on Thursday passed the Financial CHOICE Act, legislation to overhaul and replace the failed Dodd-Frank Act that has contributed to the worst economic recovery of the last 70 years.“Every promise of Dodd-Frank has been broken,” said Financial Services Committee Chairman Jeb Hensarling (R-TX), as he read letters from Americans about how they were declined home, automobile and small business loans due to Dodd-Frank’s burdensome regulations.  “Fortunately there is a better, smarter way.  It’s called the Financial CHOICE Act.  It stands for economic growth for all, but bank bailouts for none.  We will end bank bailouts once and for all.  We will replace bailouts with bankruptcy.  We will replace economic stagnation with a growing, healthy economy,” he said.

“We will make sure there is needed regulatory relief for our small banks and credit unions, because it’s our small banks and credit unions that lend to our small businesses that are the jobs engine of our economy and make sure the American dream is not a pipe dream,” said Chairman Hensarling.

CHOICE, which stands for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs, has received strong support from community banks and credit unions.  Large financial institutions did not offer their support for the Financial CHOICE Act.  Instead, Wall Street CEOs have publicly said they do not support repealing Dodd-Frank.

The Congressional Budget Office reports the Financial CHOICE Act would reduce the deficit by $33.6 billion over 10 years and that the bill’s regulatory relief would benefit community banks and credit unions.  The nation’s largest banks would be unlikely to raise enough capital to meet the bill’s requirement for substantial regulatory relief, the CBO reported.

FINANCIAL CHOICE ACT AT A GLANCE:

BANKRUPTCY, NOT BAILOUTS

No more bailouts:  that’s at the core of the Financial CHOICE Act. With changes to the bankruptcy code, large financial firms can fail without disrupting the entire economy or forcing hardworking taxpayers to pay for more bailouts.

ACCOUNTABILITY FOR WALL STREET AND WASHINGTON

The Financial CHOICE Act includes the toughest penalties in history for those who commit financial fraud and insider trading.  Holding Wall Street accountable with the toughest penalties in history will deter corporate wrongdoing and better protect consumers. At the same time the Financial CHOICE Act holds Wall Street accountable, it also holds Washington accountable. Tougher accountability for Wall Street and Washington will protect the integrity of our markets so they benefit ordinary Americans who are working, saving and investing.

STRONGLY CAPITALIZED BANKS

Dodd-Frank’s one-size-fits-all regulations treat all financial institutions the same, regardless of their size.  That makes no sense and hurts smaller, hometown banks and credit unions that did nothing to cause the last financial crisis.

The Financial CHOICE Act is based on two important principles:  First, all banks need to be well-capitalized and, second, community banks and credit unions deserve relief from the crushing burden of over-regulation. Under the Financial CHOICE Act, banks and credit unions will qualify for regulatory relief if they elect to maintain enough capital to ensure that if they get in trouble, taxpayers won’t be forced to bail them out. Ninety-eight percent of the financial institutions that met the Financial CHOICE Act’s requirements for being well-capitalized did not fail during the financial crisis.  Of the miniscule percentage that did fail, none posed a systemic risk.

EMPOWER AMERICANS

The Financial CHOICE Act grows our economy from Main Street up.  Dodd-Frank tries to control the economy from Washington down.  The Financial CHOICE Act will help get credit and capital into the hands of working men and women to fuel their economic growth.

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House GOP Moves to End “Bailout Nation” with the Financial CHOICE Act

dodd frank

No More Bank Bailouts, Accountability for Wall Street and Washington, Economic Growth at the Core of Republican Plan

April 20,2017

the staff of the Ridgewood blog

WASHINGTON – Financial Services Committee Chairman Jeb Hensarling (R-TX) today announced that the Committee will hold a hearing to discuss the Financial CHOICE Act on Wednesday, April 26 at 10:00 a.m.

“Republicans are eager to work with the President to end and replace the Dodd-Frank mistake with the Financial CHOICE Act because it holds Wall Street and Washington accountable, ends taxpayer-funded bank bailouts, and unleashes America’s economic potential,” said Chairman Hensarling.  “We want economic opportunity for all, bailouts for none.  We want real consumer protections that will give you more choices.  Our solution grows the economy from Main Street up, creates more opportunities for working families to get ahead, and levels the playing field with no more Wall Street bailouts.”

CHOICE stands for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs.

The ideas and principles behind the Financial CHOICE Act were first unveiled last June by Chairman Hensarling in a speech to the Economic Club of New York.  The Financial Services Committee approved the Financial CHOICE Act in September.  The Committee will discuss an updated version of the bill at Wednesday’s hearing.

“Supporters of Dodd-Frank promised it would lift the economy, end bailouts and protect consumers.  Yet Americans have suffered through the worst recovery in 70 years, Dodd-Frank guarantees future bailouts for Wall Street, and consumers are paying more and have fewer choices.  Dodd-Frank failed to keep its promises to the American people, but we will work with President Trump to follow through on his promise to dismantle Dodd-Frank.  That’s not what Wall Street wants, but it is what hardworking Americans need to have a healthier economy with more opportunities so they can achieve financial independence.”

FINANCIAL CHOICE ACT AT A GLANCE:

BANKRUPTCY, NOT BAILOUTS

No more bailouts:  that’s at the core of our plan and our commitment to hardworking taxpayers. With bipartisan changes to our bankruptcy code, large financial firms can fail without disrupting the entire economy or forcing hardworking taxpayers to pay for more bailouts.

ACCOUNTABILITY FOR WALL STREET AND WASHINGTON

The Financial CHOICE Act includes the toughest penalties in history for those who commit financial fraud and insider trading.  Holding Wall Street accountable with the toughest penalties in history will deter corporate wrongdoing and better protect consumers. At the same time we hold Wall Street accountable, the Financial CHOICE Act also holds Washington accountable. Tougher accountability for Wall Street and Washington will protect the integrity of our markets so they benefit ordinary Americans who are working, saving and investing.

STRONGLY CAPITALIZED BANKS

Dodd-Frank’s one-size-fits-all regulations treat all financial institutions the same, regardless of their size.  That makes no sense and hurts smaller, hometown banks and credit unions that did nothing to cause the last financial crisis.

The Financial CHOICE Act is based on two important principles:  First, all banks need to be well-capitalized and, second, community banks and credit unions deserve relief from the crushing burden of over-regulation. Under the Financial CHOICE Act, banks and credit unions will qualify for regulatory relief if they elect to maintain enough capital to ensure that if they get in trouble, taxpayers won’t be forced to bail them out. Ninety-eight percent of the financial institutions that met the Financial CHOICE Act’s requirements for being well-capitalized did not fail during the financial crisis.  Of the miniscule percentage that did fail, none posed a systemic risk.

EMPOWER AMERICANS

The Financial CHOICE Act grows our economy from Main Street up.  Dodd-Frank tries to control the economy from Washington down.  The Financial CHOICE Act will help get credit and capital into the hands of working men and women to fuel their economic growth.

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House Committee Approves Garrett Promoted Financial CHOICE Act to end Corporate Bailouts

Scott Garrett

September 14,2016

the staff of the Ridgewood bog

Washington DC,  Legislation to end bailouts for big banks, toughen penalties for wrongdoing on Wall Street, promote economic growth, and provide desperately needed regulatory relief for small community banks and credit unions passed the House Financial Services Committee 30-26 today.

The legislation – the Financial CHOICE Act – ends the Dodd-Frank Act’s taxpayer-funded bailouts of large financial institutions; relieves banks that elect to be strongly capitalized from growth-strangling regulation that slows the economy and harms consumers; imposes tougher penalties on those who commit financial fraud; and demands greater accountability from Washington regulators.

“Democrats just voted against a bill that increases penalties against those who commit financial fraud.  They just voted against a bill that ends taxpayer-funded bailouts, and they just voted against legislation that provides relief from Washington’s crushing regulatory burden for small banks, credit unions and consumers,” said Financial Services Committee Chairman Jeb Hensarling (R-TX), the sponsor of the bill.

“The bill holds Wall Street accountable with the toughest, strongest, strictest penalties ever – far greater than those in Dodd-Frank.  And as recent headlines attest, obviously stronger penalties are needed.  It requires banks to be well capitalized to prevent another financial crisis and puts in place the toughest penalties in history to protect consumers from fraud and deception.

“The Financial CHOICE Act will help grow the economy for all Americans, not just those at the top.  It promotes strong and transparent markets to revitalize job creation in our poorest communities and ensures every American has the opportunity to achieve financial independence, no matter where they start out in life.”

The Financial CHOICE Act, which stands for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs, received strong support from community banks and credit unions, small business groups and conservative organizations.  Large financial institutions did not offer their support for the bill.

Democrats on the Committee – despite having spent months criticizing the Financial CHOICE Act – refused to offer a single amendment to the bill.

For more information on the Financial CHOICE Act, visit www.financialservices.house.gov/choice/.

Organizations offering praise for the Financial CHOICE Act include the following:

“The [Financial CHOICE Act] would provide meaningful regulatory relief to help community banks foster economic and job growth in their local communities.” — Independent Community Bankers of America

“This bill provides significant regulatory relief essential to restoring economic growth. Republican members of Congress have repeatedly promised to get rid of Dodd-Frank and stop taxpayer funded bailouts. Now they have the opportunity to fulfill that promise by bringing the Financial Choice Act to a vote in the House and Senate, and sending the bill to the President’s desk.” — Heritage Action

“Chairman Hensarling’s CHOICE Act would be a win for Main Street consumers, workers and small businesses. Since Dodd-Frank was passed in 2010, access to free-checking has decreased while lobbyists’ importance has increased. The CHOICE Act helps reverse this trend.” — Main Street Growth Project

“Americans for Prosperity applauds your leadership in reining in the overbearing financial regulations that threaten growth and threaten consumer financial stability. Repealing and replacing the failed policies established in the Dodd-Frank Act will mean that Americans will have greater access to capital, which will lead to greater job growth, personal wealth, and overall economic prosperity. We are proud to support the CHOICE Act, and we urge your colleagues to support it.” — Americans for Prosperity

“….[the Financial CHOICE Act] is precisely the right combination to get the American economy moving again. The CHOICE Act offers sensible regulatory relief for qualifying institutions, protects the American taxpayer and consumer from another Wall Street meltdown, and holds federal financial regulatory agencies accountable.” — Independent Bankers Association of Texas

“….several components of this legislation target reforms specifically to facilitate investment in small business. The inclusion of these provisions and others will provide regulatory relief and modernization that will allow the private sector to fuel economic growth in our 21st century economy.” — Small Business Investor Alliance

“This is an important bill that will truly reform rules governing the financial system, encourage innovation across the system, vastly improve access to capital for entrepreneurs and small businesses, and transform a regulatory structure that lacks accountability, is too secretive, and ignores its responsibilities concerning small businesses.” — Small Business & Entrepreneurship Council

“We greatly appreciate the Chairman’s efforts in Title III of the bill to reform the Consumer Financial Protection Bureau (CFPB or Bureau). This title will help to ensure the Bureau serves as a non-partisan regulator that operates within the framework of the law by giving Congress more oversight authority, taking into account the opinions of all stakeholders, and properly weighing the impact its regulations have on the availability of credit.” — Consumer Bankers Association

“NAR is pleased that the FCA [Financial CHOICE Act] includes provisions that will enhance transparency, accountability and fairness in our financial system. As a result, the FCA will help expand financial product choice and promote economic opportunity. These provisions are an important step towards making property ownership a reality for hardworking Americans and U.S. businesses.” – National Association of Realtors

“If we want the economy to improve — if we want to give all Americans the chance to prosper again — we need to put an end to Washington’s destructive regulatory agenda once and for all.  Thankfully, an increasing number of elected officials in Washington are fighting against the harmful effects and unintended consequences of these onerous regulations. Leading the fight in Congress has been House Financial Services Committee Chairman Jeb Hensarling (R-TX), who recently outlined a comprehensive plan to turbocharge the American economy.  His new legislation, The Financial CHOICE Act, aims to curb regulations to create opportunity and choice for investors, consumers, and entrepreneurs nationwide.” — Conservative Coalition Letter of Support

“If signed into law, the bill would end the era of too big to fail, and would move banking and financial decisions away from Beltway and back to Main Street. This bill is balanced, meets key conservative criteria, and should continue to move through the House to final passage.” — FreedomWorks

“….[the Financial CHOICE Act] would begin the process of implementing sensible, necessary reforms to the U.S. financial system. That system has been saddled with an ineffective regulatory structure and an array of conflicting legislative and regulatory requirements that, individually or collectively, constrain growth. The Chamber believes the Financial Choice Act is a positive first step for unlocking the capital markets to better facilitate the financing of America’s economic growth and job creation.” — U.S. Chamber of Commerce

“….the CHOICE Act offers a strong alternative to Dodd-Frank and the regulatory morass it created. Rather than creating a flurry of complex rules in response to the financial crisis, Congress should have mandated higher capital requirements for financial institutions. That is why NTU is enthusiastic about the CHOICE Act’s “off ramp” from the bulk of the current Dodd Frank regulatory regime.” — National Taxpayers Union

“….the CHOICE Act and the substantial regulatory relief it provides…will generate meaningful economic and job growth in our communities.” — Mid-Size Bank Coalition of America

“….[the Financial CHOICE Act] address[es] the challenging credit conditions that home builders and home buyers continue to experience as a result of an overly zealous regulatory response to the financial crisis. NAHB appreciates your efforts to initiate regulatory reform to support a more robust recovery.” — National Association of Home Builders

“….it is vital that we take heed of any policy that claims to “fix” the voluntary actions of consumers. Price controls go against everything we stand for as a country and do nothing but redistribute wealth, damaging the lives of hardworking Americans. The first step forward is reform. The Financial CHOICE Act is that first step.” — Red State

“….the Financial Choice Act if passed will restore competition in the marketplace by removing arbitrary government price caps. Additionally, it will allow banks the ability to recoup the money they spend on fraud protection from the retailers that reap the benefit of the use of debit cards. Consumers will once again have affordable access to basic banking services, and small businesses will have the freedom to negotiate processing fees that make sense based on the type of goods they sell. In short, all true conservatives in Congress should rally behind Neugebauer and Hensarling’s bill, because it will cut back on big government red tape and allow the free market to thrive again.” — Liberty Unyielding

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Rep. Scott Garrett: Financial CHOICE Act will help spur economic growth

Scott Garrett Parkway Elementary School in Paramus

by Congressmen Scott Garrett

Ridgewood NJ, THE MOST important financial decisions in life aren’t made in Wall Street board rooms or by bureaucrats in Washington — they’re made around kitchen tables. Around these tables families look at their bills, their savings, their job prospects and their personal finances and try to figure out how to get ahead in this terrible economy. Unfortunately, the Dodd-Frank Act, the law that was enacted in 2010 with huge promises of economic recovery, has stifled the financial success of families, businesses and entrepreneurs.

And while you might not know Dodd-Frank by name, you have certainly felt its impact in your wallet. The architects of Dodd-Frank crafted an onerous maze of regulations and rules that put Washington priorities ahead of the needs of American families. Since Dodd-Frank became law, free checking has largely disappeared, and the American Dream has become more difficult to make a reality — especially if you’re self-employed — since it’s become harder to obtain a loan to buy a new house or start a business. In fact, the rate of new business start-ups is near a 20-year low, and last month’s jobs report was the worst since 2010.

Not only has Dodd-Frank made it harder for Americans to get ahead, it makes yet another bailout of Wall Street more likely. During the 2008 crisis, the taxpayers were forced to bail out big banks considered “too big to fail.” Today, those banks are bigger, and Dodd-Frank enshrines in law the expectation that taxpayers will once again be on the hook for costly bailouts.

I’m joining my colleagues on the House Financial Services Committee to propose a blueprint for American financial success. The Financial CHOICE Act — which stands for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs — is designed to revitalize economic growth through competitive capital markets. This plan will fix the problems of Dodd-Frank by increasing punishment for crooks, ending taxpayer bailouts, scaling back poorly designed regulations and holding Washington accountable to We the People.

Penalties for fraud

To better protect consumers, the Financial CHOICE Act imposes the toughest — and most expensive — penalties in history for fraud and deception. The Securities and Exchange Commission will have new authority to increase punishment for repeat offenders and link fines to investor losses. This will make sure that fraudsters who stole or scammed huge amounts of money from inno-cent people won’t get just a slap on the wrist for their crimes.

Our plan offers economic opportunity for all and bailouts for none. Dodd-Frank made promises to end “too big to fail” that were never kept. We can end this cycle by forcing failing institutions to file for bankruptcy. Our plan reforms the bankruptcy code to protect taxpayers and instill much-needed market discipline. Taxpayers shouldn’t be on the hook for the mistakes of big banks and Wall Street, and under our plan they never will be again.

One of the key tenets of the Financial CHOICE Act is an optional “off-ramp” for financial institutions to break free of Washington’s one-size-fits-all rules. But the condition for being free of excess regulation is a strong capital standard, which means that banks will be forced to hold assets to back up their liabilities. By passing the CHOICE Act, we can both manage liabilities and let banks do what they do best: invest in the next American Dream.

Washington desperately needs transparency. Dodd-Frank created bureaucracies like the Consumer Financial Protection Bureau that gave immense power to a single, politically appointed director who makes economic decisions on your behalf. The CFPB tells you what financial products you can have or not have because they think they know what’s best for you when it comes to loans, mortgages and car purchases.

Our plan makes the CFPB, and other unaccountable agencies, into bipartisan commissions. We would also require all financial regulations to undergo strict cost-benefit tests to make sure they’re not doing more harm than good. And we would change the system to ensure that all major financial regulations are approved by Congress before they are imposed on the American people.

Resistance by banks

I expect that it will be difficult to get support for bottom-up solutions like the Financial CHOICE Act in Washington. This plan is hated by big banks and crony capitalists that are all going to lose influence and power over the rest of America if this bill is passed. However, I believe that Congress can make this necessary reform with the support of people who are more concerned about the financial decisions made around kitchen tables than they are with protecting the interests of Washington insiders.

People in northern New Jersey don’t need economic reports to tell them that the economy is still in bad shape. We see it every day in our bank accounts and in our towns. Recovery can happen, and we can be prosperous again, but it has to start in our communities — not in Washington. The Financial CHOICE Act can help make that possible.

Rep. Scott Garrett, R-Wantage, serves New Jersey’s 5th Congressional District. He is chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises.